The Wilshire Village soap opera continues: A source sends Swamplot two trustee’s sale notices for the now-demolished 7.68-acre apartment complex at the corner of W. Alabama and Dunlavy.
How deep into it is the owner? There’s a first lien of $10,742,000 to Amegy Bank, now “wholly due and payable”! That lien dates from January 31, 2006 — the same date, according to HCAD, that the owner, a limited partnership named Alabama & Dunlavy Ltd., took over the property.
The second notice documents problems with Alabama & Dunlavy Ltd.’s separate mezzanine financing with Wedge Real Estate, in the amount of $3 million. That separate promissory note appears to date from May 30th of 2008. Both trustee’s sale notices are dated earlier this month.
Our source comments:
It is rather interesting that Wedge Holdings is the mezz lender, with Wedge being Mayor Bill White’s former company. I feel certain that Matt [Dilick] will avert foreclosure by filing bankruptcy, if he has not already done so.
Oh but if if if foreclosure somehow isn’t averted, where and when might eager Swamplotters be able to snap up this fine scraped property?
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From the notices:
NOW, THEREFORE, NOTICE IS HEREBY GIVEN that on Tuesday, November 3, 2009, the Substitute Trustee will begin to sell the Mortgaged Property at the earliest at 10:00 a.m. or not later than three hours after that time, at public auction to the highest bidder for cash; such sale will be held in that area designated for such sales by Resolutions of the Commissioners’ Court of Harris County, Texas, such designated area being . . . the First Floor Lobby and 8,530 square feet of the contiguous covered area outside the First Floor Lobby, Harris County Family Law Center Building, 1115 Congress Street, City of Houston, Harris County, Texas . . .
- Wilshire Village coverage [Swamplot]
Photos of Wilshire Village: Jim Parsons, from GHPA’s Houston Deco (before) and Swamplot inbox (after)
Lordy Lordy…the Swamplot coverage of this will never die.
Would you want it to? I have really been gripped by this saga as it has unfolded. and it appears the story is not over yet.
Interesting revelation about the “connection” with Wedge Group and of course the “connection” with Bill White.
How convenient that everyone can foreclose on a piece of property that has been cleared and more easily sold. And no doubt a buyer is already waiting in the wings?
Bill White really does make Chuck Rosenthal look like Dudley Do-Right.
Some quick math…
7.68 acres = 334,541 SF
Amegy loan = $10,742,000 = 32.11 PSF
Wedge loan = $3,000,000 = 8.97 PSF
Total loans = $41.08 PSF
It seems to me that the dirt should be worth a lot more than $41 PSF.
If a foreclosure actually happens, the Wedge loan will be wiped out and Wedge will receive nothing, unless they have some personal recourse against the borrowers. If Wedge wants to protect its interest, they should payoff the Amegy loan and take over the property from the current owners.
Amegy doesn’t appear to have a lot of risk of loss in the deal. Like all banks right now though, they are hungry for cash. It’s clear they’ve decided to force the owners hand rather than sit back and let the owners try to sell for max $$$, which ain’t easy in this market.
A BK by the owner will only delay the process for so long. Amegy obviously wants their cash back. Even without a foreclosure, it seems that this parcel is going to trade hands soon.
Somebody needs to round up some cash real quick and buy this prime piece of dirt and turn it in sweet ass park.
I won’t be putting my money in any bank that Bernard runs…
You think buying a large extremely expensive plot of land is not risky…
You think Amegy would want to triple down just so it can recover $3 MM…
And if they are hungry for cash, does it make sense that they would invest another $10 MM…
You think someone is going to cobble together $10+ MM to turn this into a park…
What planet do you live on?
This beggarly dump needed to be destroyed by any means necessary. Not only is this valuable land well-suited for more refined sensibilities, but it was becoming a nuisance to Wilshire’s more affluent neighbors. It will not be missed.
this loan probably wasn’t performing and Amegy was forced to foreclose once the improvements and cash flow generating capabilities were gone. in a BK the Wedge loan will be viewed as the “Fulcrum Security” with the most to win or lose so a judge will allow the wedge guys to settle with the owner and pay off or refi with amegy if they want it. if amegy ends up owning this, it is after the equity guys throw in the towel AND the mezz guys. which says something about Houston Raw Land prices and the credit situation out there on the street. i think single real estate assets face a “fast track” BK process too. January 2006. The Top.
Not only is this valuable land well-suited for more refined sensibilities, but it was becoming a nuisance to Wilshire’s more affluent neighbors.
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I suspect you don’t live in the neighborhood. Suffice it to say you hear “hola” more than you hear “hello.”
The bottom line is I don’t think Dillick is the brightest light bulb.
Mr. Mystery,
Your antics are not amusing. English is spoken in every establishment I frequent, and I’m not referring to the brutish grunts shared between you and the misanthropes you associate with. Furthermore, you are either clearly not aware of this property’s locale or lack a basic understanding of Houston’s real property market. That is all.
Apparently, SD doesn’t know ho to read.
Oh how the mighty real estate flippers have fallen!
Bernard’s idea for a park to take the place of Wilshire Village is a fine idea. But anyone that thinks he could get $50 a square foot for bare dirt in that neighborhood, located on unimproved streets that flood, bounded by mega power poles and a fiber optic channel that AT&T has to dig up every few years or so might need to think twice. That per square foot price needs to be added to the cost of hefty street, sewer, and utility improvements, even before a pencil hits a napkin.
Ouch! Matt, you must be a blast at cocktail parties. Bernard you are correct, there is no doubling down,the bank already gave their money to Dillick in 2006, Amegy will protect their position via first lien position at the eventual f/c sale. Wedge may elect to protect their position by paying off the men in long underwear. Wedge’s real estate group is usually in for the long term and given the location long term they should be fine, unless we turn into a banana republic of course.
Furthermore, you are either clearly not aware of this property’s locale or lack a basic understanding of Houston’s real property market.
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I like to walk. Odd habit. I often walk to Fiesta. I often walk to a friend’s on West Main near Shepherd. Sometimes we walk to the Menil. You should walk the neighborhood before you tell someone they don’t know the neighborhood.
As Rick Perry would say, “Adios, mo-fo.” That’s Spanish for drop dead.
From cross:
Ouch! Matt, you must be a blast at cocktail parties
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Oh, I’m a hoot. My favorite, usually when I wish I hadn’t graced everyone with my presence where “Republican types” have gathered and hope never to be asked to again, is posing the question of why god gave the Muslims all the oil. Leaves everyone speechless. While I finish the Jack Daniels and slip out through the kitchen.
Could you be any more of a dingleberry Matt Mystery?
Tosses a *dingleberry* at Melanie…
There’s no way they’ll get $41 PSF right now, considering how fast they have to pony up the cash in this kind of sale. My guess is maybe $30 PSF. Whoever buys it will have to sit on it for a couple years until debt is available for a multifamily project.
Matt may be many things, but lacking intellect is not one of them. If I were in a tough spot on a real estate deal, being in Wilshire Village at less than $40 a foot would be preferred. I know the commercial realestate market is in very tough shape, but how do you put together over 7 acres in this area at $40 a foot? If this deal gets taken back by the bank. I am going to be really worried about the market. My guess, is enough investors will become aware of the opportunity and it will be snapped up at somewhere around $50 a foot. Sorry to see Matt or anyone else in difficult times. I wonder how Cohen is involved in ownership, and the extended family, who are real estate players. I bet one of these end up with the property. I would not be supprised if Matt has been taken for a ride, by those more clever, with deeper pockets than himself. We will see. I know this partnership extends to some other great properties, that Cohen owned.
I remain curious as to what happens.